Tesla's investors need to ask themselves how they'd feel if Elon Musk left the company

Following a fourth-quarter
earnings report that disappointed, shares of the electric-car
maker were down more than 7% as earnings and car deliveries
disappointed in the final quarter of 2014.

In a note to clients after the report's release, analysts at Bank
of America Merrill Lynch, which has an underperform rating and a
price target of $70 on Tesla shares (Tesla shares were trading
just below $200 early Thursday), outlined numerous risks
surrounding the company.

One of the risks highlighted by BofA is the "key-man" risk posed
by the belief that a company helmed by CEO Elon Musk is in good
hands, almost regardless of what the financial performance
says.

"In our view, many bulls view Elon Musk's leadership and business
acumen as the crux of their investment thesis in Tesla shares,"
the firm writes.

"In fact, we have been told on more than one occasion that
betting against Musk is unwise. While we certainly cannot
argue with the successes, both past and present, of Tesla's
charismatic CEO, we do recognize the existence of key-man risk.
In other words, investors should perhaps ask themselves
how comfortable they would be with their investment if Elon Musk
resigned from Tesla."

According to data from Bloomberg, BofA's $70 price target on
Tesla is the lowest among major Wall Street firms covering the
stock.

BofA adds that there are "many fundamental reasons" why it
believes the stock is overvalued, and while there is a litany of
views arguing in favor of the company's current
valuation, BofA writes that it has "a hard time
believing anyone would argue that the Tesla story would not
change dramatically without Musk in the picture."

As for fourth-quarter-specific problems, BofA had this to say:

Deliveries, revenue, and earnings were big misses.

Tesla burned $455 million of free cash flow during the
quarter.

Operating expenses, capital expenditures, and cash burn were
all higher than forecast, and there isn't much relief in sight.

It could be hard for Tesla bulls to maintain their lofty
expectations.

At the time BofA published its note, Tesla shares were down only
slightly in after-hours trade Wednesday, and the firm wrote that
"there is likely much more ahead," in terms of downside movement
for the stock.